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Does School Choice Increase School Quality?

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Author Info
George M. Holmes
Jeff DeSimone
Nicholas G. Rupp

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Abstract

Federal No Child Left Behind' legislation, which enables students of low-performing schools to exercise public school choice, exemplies a widespread belief that competing for students will spur public schools to higher achievement. We investigate how the introduction of school choice in North Carolina, via a dramatic increase in the number of charter schools across the state, affects the performance of traditional public schools on statewide tests. We find test score gains from competition that are robust to a variety of specifications. The introduction of charter school competition causes an approximate one percent increase in the score, which constitutes about one quarter of the average yearly growth.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9683.

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Date of creation: May 2003
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Handle: RePEc:nbr:nberwo:9683

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Find related papers by JEL classification:
H4 - Public Economics - - Publicly Provided Goods
I2 - Health, Education, and Welfare - - Education

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Caroline M. Hoxby, 2002. "School Choice and School Productivity (or Could School Choice be a Tide that Lifts All Boats?)," NBER Working Papers 8873, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  3. George M. Holmes, . "The Effect of Charter School Competition on Traditional School Quality," Working Papers 0107, East Carolina University, Department of Economics. [Downloadable!]
  4. Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Ai, Chunrong & Norton, Edward C., 2000. "Standard errors for the retransformation problem with heteroscedasticity," Journal of Health Economics, Elsevier, vol. 19(5), pages 697-718, September. [Downloadable!] (restricted)
  6. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule To Estimate The Effect Of Class Size On Scholastic Achievement," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 533-575, May. [Downloadable!] (restricted)
  7. Alderman, Harold & Orazem, Peter F. & Paterno, Elizabeth M., 2001. "School Quality, School Cost, and the Public/Private School Choices of Low-Income Households in Pakistan," Staff General Research Papers 1970, Iowa State University, Department of Economics. [Downloadable!]
  8. Eric A. Hanushek & Steven G. Rivkin & Lori L. Taylor, 1996. "Aggregation and the Estimated Effects of School Resources," NBER Working Papers 5548, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Betts, Julian R, 2001. "The Impact of School Resources on Women's Earnings and Educational Attainment: Findings from the National Longitudinal Survey of Young Women," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 635-57, July. [Downloadable!] (restricted)
  10. Bettinger, Eric P., 2005. "The effect of charter schools on charter students and public schools," Economics of Education Review, Elsevier, vol. 24(2), pages 133-147, April. [Downloadable!] (restricted)
  11. Taber, Christopher R., 2000. "Semiparametric identification and heterogeneity in discrete choice dynamic programming models," Journal of Econometrics, Elsevier, vol. 96(2), pages 201-229, June. [Downloadable!] (restricted)
  12. Julian R. Betts, 2000. "The Impact of School Resources on Womens Earnings and Educational Attainment: Findings from the National Longitudinal Survey of Young Women," University of California at San Diego, Economics Working Paper Series 96-24r, Department of Economics, UC San Diego. [Downloadable!]
  13. Geske, Terry G. & Davis, Douglas R. & Hingle, Patricia L., 1997. "Charter Schools: A Viable Public School Choice Option?," Economics of Education Review, Elsevier, vol. 16(1), pages 15-23, February. [Downloadable!] (restricted)
  14. Card, David & Krueger, Alan B, 1992. "School Quality and Black-White Relative Earnings: A Direct Assessment," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 151-200, February. [Downloadable!] (restricted)
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  15. Blair, John P. & Staley, Sam, 1995. "Quality competition and public schools: Further evidence," Economics of Education Review, Elsevier, vol. 14(2), pages 193-198, June. [Downloadable!] (restricted)
  16. Caroline M. Hoxby, 2000. "Does Competition among Public Schools Benefit Students and Taxpayers?," American Economic Review, American Economic Association, vol. 90(5), pages 1209-1238, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Joseph Palardy & Todd Nesbit, 2007. "Traditional public schools versus charter schools: a comparison of technical efficiency," Economics Bulletin, Economics Bulletin, vol. 9(9), pages 1-10. [Downloadable!]
  2. Kaoru Nabeshima, 2003. "Raising the quality of secondary education in East Asia," Policy Research Working Paper Series 3140, The World Bank. [Downloadable!]
  3. Robert Inman, 2005. "Financing Cities," NBER Working Papers 11203, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Daniel Millimet; Vasudha Rangaprasad, 2004. "Strategic Competition Amongst Public Schools," Econometric Society 2004 North American Summer Meetings 197, Econometric Society. [Downloadable!]
    Other versions:
  5. Stephen Gibbons & Stephen Machin & Olmo Silva, 2006. "Choice, Competition and Pupil Achievement," IZA Discussion Papers 2214, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Scott Imberman, 2009. "The Effect of Charter Schools on Achievement and Behaviorof Public School Students," Working Papers 2009-02, Department of Economics, University of Houston. [Downloadable!]
  7. Jaag, Christian, 2006. "School Competition," MPRA Paper 339, University Library of Munich, Germany. [Downloadable!]
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